Shroder Will Invade

With the adoption of the Federal Reserve System, a great effort was made to create in the U. S. an acceptance or bill market similar to that in London. After reaching a climax speculatively in 1919-20, however, the acceptance business began to decline. First, the widely-urged trade acceptance went into the discard; next, the volume of bankers acceptances sharply diminished. One by one, the acceptance firms which had blossomed in the great days of our foreign trade boom four years ago lost their earlier enthusiasm. Some went over wholesale to the bond business.

Now it appears that the experienced London bankers, J. Henry Shroder & Co., intend to establish a branch in New York, to engage solely in the acceptance business. The firm, organized in 1804, is one ot the most famous international houses in the world, and in London a leading security underwriter. It is also active in Continental Europe and South America. Although of German origin originally, Shroder & Co. has by virtue of its long British associations become practically a British firm in sympathies and outlook.

Bankers are led to wonder just what Shroder & Co. sees in the American acceptance business. It is asked, does the London house believe in the future of acceptances here, or is it simply determined to take over a remainder business here of which New York bankers are tired ?